MMA S.B. 1577 75(R)BILL ANALYSIS


HIGHER EDUCATION
S.B. 1577
By: Bivins (Rangel)
4-30-97
Committee Report (Amended)



BACKGROUND 

Currently, the state's system of delivering post-secondary 
technical education programs has come 
into question.  The Texas State Technical College System (TSTCS) 
has been viewed as having a 
statewide mission for delivering highly specialized technical 
programs that are too expensive to 
replicate on all community college campuses.  Community colleges' 
perceived focus, on the other 
hand, has been to provide courses and programs for the population 
within its service area. 
However, the state uses the same formulas for funding technical 
education programs at both 
types of institutions.  It has been argued that inadequate 
funding for advanced technical programs 
has caused the system to stray from its high-tech mission to 
compete with community colleges 
for funding.  This legislation narrows the system's mission to 
offering advanced and highly 
specialized technology programs as defined by the Texas Higher 
Education Coordinating Board, 
while encouraging alliances with community colleges to provide 
technical assistance as well as 
deliver courses and joint programs.  

In addition, S.B. 1577 requires that remedial education be 
provided by a local or service region 
community college at the system campus with no additional charge 
to the student, and eliminates 
all system authority for the establishment of extension centers 
and programs, while providing for 
the maintenance of existing system centers and programs by local 
communities.  

Finally, this bill authorizes centers operated by the system at 
Abilene, Brownwood, and 
Breckenridge to merge with certain junior colleges, and 
implements a new funding formula, 
subject to legislative approval, for advanced and emerging 
technology courses to account for the 
associated high costs.

PURPOSE

S.B. 1577 establishes public post-secondary technical and 
vocational education, provides for the 
programs, operation, and administration of the Texas State 
Technical College System, and 
transfers certain centers operated by the system to certain 
junior colleges.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does expressly grant 
rulemaking authority to the Texas 
Higher Education Coordinating Board in SECTION 13 [Section 
61.0594(c), Education Code] of 
this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 135.01, Education Code, by amending 
Subsection (b), and 
adding Subsections (d), (e) and (f) as follows:
(b)  Adds language authorizing the Texas State Technical College 
System (TSTCS) to 
offer supporting academic course work to the extent required for 
accreditation by a 
recognized accrediting agency as defined by Sec. 61.003.  Deletes 
language relating to 
occupationally oriented programs with supporting academic course 
work and makes a 
conforming amendment. 
(d)  Authorizes TSTCS, if a program is not authorized by 
Subsection (b), to continue to 
offer the program after September 1, 1997 at a particular campus 
or center, provided
 certain conditions exist.  Sets forth the terms by which the 
system campus or center is 
authorized to revise the curriculum.  
(e)  Sets forth the terms by which the Texas Higher Education 
Coordinating Board 
(THECB) is required to name an advisory committee to provide 
advice, counsel, and 
recommendations, including recommendations on programs and 
coursework.
(f)  Provides that this section does not limit the authority of 
THECB to exercise its duties 
under this title.

SECTION 2. Amends Section 135.02(a), Education Code, to add that 
the system is composed 
of a campus, rather than an extension center, located in the city 
of Marshall.

SECTION 3. Amends Section 135.02, Education Code, by amending 
Subsections (d) and (e), 
and adding Subsection (f), to read as follows:
(d)  Prohibits the board of regents of the Texas State Technical 
College System (board) 
from establishing an extension center after September 1, 1997.  
Deletes the provision 
authorizing the board to establish an extension center.
(e)  Provides that it is the intent of the legislature that the 
system campus in Marshall 
shall not offer general academic or technical courses or programs 
that duplicate those 
offered by Panola College, unless:
 (1)  Panola College agrees that the system campus may offer the 
course or 
program; or
 (2)  THECB determines that it is essential that the course be 
offered for the 
campus to be accredited. Deletes the provisions regarding courses 
offered at 
Northeast Texas Community College and Kilgore College.  
Designates THECB as 
responsible for determining whether proposed courses or programs 
are 
duplicative.
(f)  Requires Panola College and the board of the system to enter 
into an agreement under 
which the college and the system agree to:
  (1)  offer courses at convenient locations for students likely to 
enroll;
  (2)  allow a student enrolled at the Marshall campus to register 
for and attend a 
course offered by the junior college as a student of the system 
(system student) 
and not as a junior college student if the course:
  (A) is required for them to complete their program; and
  (B) the course cannot be offered at the Marshall campus due to 
restrictions 
provided by Subsection (e).
  (3)  that the system will pay the junior college for specific 
costs of providing the 
course to the system student; and
  (4)  that a student may not be required to pay tuition or fees 
charged by the junior 
college for registering for or attending the course.

SECTION 4. Amends Section 135.04, Education Code, by amending 
Subsections (b) and (c), 
and adding Subsections (d) and (e) to read as follows:
(b)  Requires THECB to determine, before a system extension 
center or extension 
program may offer a new programs, to determine that the program:
(1)  is authorized by Section 135.01;
 (2)  has sufficient demand;
  (3)  can be offered by the system at appropriate levels of 
quality and cost; and
  (4)  is not offered by the public junior college.  
(c)  Authorizes the campus or extension center to offer a program 
that is authorized by 
Section 135.01 and approved by THECB where a specific entity 
located in a county or 
portion of a county that is operating a public junior college 
district requests that the 
campus or extension center offer the program.
(d)  Requires THECB to determine, before a system campus may 
offer new programs, 
that:
 (1)  the program is authorized by Section 135.01;
 (2)  a need exists for the program;
 (3)  the system can offer the program at appropriate levels of 
quality and cost; and
  (4)  there is sufficient demand to justify offering program.  
(e)  Requires a system campus or center before offering a new 
program that is not
 authorized by Section 135.01 to receive approval from the 
regional higher education 
council and THECB.  Requires THECB to determine the following:
  (1)  existing need;
  (2)  sufficient demand to justify the program; and
 (3)  that the system can offer the program at an appropriate 
level of quality and 
cost.
SECTION 5. Amends Section 135.06, Education Code, by adding 
Subsection (g), to prohibit 
the system from creating an extension program after September 1, 
1997.  States that this 
subsection is not intended to discourage the system from 
cooperating with public junior colleges 
in offering programs.

SECTION 6. Amends Section 135.51, Education Code, by adding 
language clarifying that the 
programs for which the board may award a certificate, diploma or 
degree are those authorized by 
this chapter.

SECTION 7. Amends Subchapter C, Chapter 135, Education Code, by 
adding Section 135.541, 
to read as follows:
Sec. 135.541.  COOPERATION WITH COMMUNITY COLLEGES.  (a)  
Requires the 
board to attempt to coordinate its programs with those of a 
public junior college that 
offers technical or vocational programs or instruction in the 
same region.  Requires the 
board to implement policies designed to encourage this 
coordination.
(b)  Requires THECB to evaluate the board's compliance with this 
section.  

SECTION 8. Amends Subchapter A, Chapter 130, Education Code, by 
adding Section 130.010, 
as follows:
Sec. 130.010.  COOPERATION WITH STATE TECHNICAL COLLEGE SYSTEM.
(a)  Requires that the board of trustees of a junior college 
district attempt to coordinate its 
programs with those of a component of TSTCS that offer technical 
or vocational 
programs or instruction in the same region to ensure the 
cost-effective use of resources 
for programs and curricula.  Requires the board to implement 
policies designed to 
encourage this coordination.  
(b)  Requires THECB to evaluate the board of trustees' compliance 
with this section.      

SECTION 9. Amends Chapter 135, Education Code, by adding 
Subchapter D, as follows:

 SUBCHAPTER D.  TRANSFERS OF CERTAIN CENTERS AUTHORIZED
Sec. 135.701.  TRANSFER OF EXTENSION CENTER IN ABILENE.  (a)  
Authorizes the 
board to transfer the governance and control of the system's 
extension center located in 
Abilene, along with all right, title, and interest in the 
property, to the board of trustees of 
Cisco Junior College, under certain conditions.
(b)  Requires that a transfer include all programs on the 
effective date of the transfer.
(c)  Makes the transfer subject to Sections 135.704-135.707, if 
agreed upon by the board of 
trustees of Cisco Junior College.

Sec. 135.702. TRANSFER OF EXTENSION CENTER IN BROWNWOOD.  (a) 
Authorizes 
the board to transfer the governance and control of the system's 
extension center located in 
Brownwood, along with all right, title, and interest in the 
property, to the board of trustees 
of Ranger Junior College, under certain conditions.  
(b)  Requires that a transfer include all programs on the 
effective date of the transfer.
(c)  Makes the transfer subject to Sections 135.704-135.707, if 
agreed upon by the board of 
trustees of Ranger Junior College.

Sec. 135.703.  TRANSFER OF RURAL TECHNOLOGY CENTER IN 
BRECKENRIDGE.
(a)  Authorizes the board to transfer the governance and control 
of the system's rural 
technology center located in Breckenridge, along with all right, 
title, and interest in the 
property, to the board of trustees of Cisco Junior College, 
Ranger Junior College, 
Weatherford College, or Western Texas College, under certain 
conditions.
(b)  Requires that a transfer include all programs on the 
effective date of the transfer.
(c)  Makes the transfer subject to Sections 135.704-135.707, if 
agreed upon by the board of
 trustees of the applicable junior college.

Sec. 135.704.  POWERS AND DUTIES.  Authorizes the board of 
trustees of the applicable 
junior college to govern and control the system center, and all 
property transferred to it under 
this subchapter.  

Sec. 135.705.  CONTRACTS AND WRITTEN OBLIGATIONS.  Establishes 
that contracts 
and written obligations entered into by the system board and in 
effect on the transfer date are 
ratified and validated.  Provides that in those contracts and 
obligations, the board of trustees 
is substituted for, and acts in the place of, the system board.  

Sec. 135.706.  EMPLOYEE INSURANCE AND OTHER BENEFITS.  States 
that any 
contract or other agreement with a provider of insurance or 
employee benefits that provides 
coverage for employees of a system center transferred under this 
subchapter is not void and 
does not terminate on the effective date of the transfer.  Sets 
forth the terms under which any 
such contract or agreement remains in effect until its date of 
expiration, with certain 
exceptions; and by which all persons for whom the insurance or 
benefits are provided on the 
effective date of the transfer are covered until the respective 
dates of termination or 
expiration of those agreements.  
 
Sec. 135.707. EFFECT OF TRANSFER ON STUDENTS AND EMPLOYEES.  
Provides 
that a transfer under this subchapter does not affect the credit 
hours earned by students at the 
center before the effective date of the transfer, or the 
employment status of administrative 
personnel, faculty, or support staff of the center.  

SECTION 10. Amends Section 4, Development Corporation Act of 1979, 
 Article 5190.6, V.T.C.S., 
by adding Subsection (k), to authorize a corporation created 
under Subsection (a) of this section to 
pay a public junior college the cost of physical plant 
maintenance and operation at certain facilities 
if the facility was formerly an extension center or rural 
technology center of TSTCS. 

SECTION 11. Amends Section 4A, Development Corporation Act of 
1979, Article 5190.6, 
V.T.C.S., by adding Subsection (s), to authorize a corporation 
created under this section to pay a 
public junior college the cost of physical plant maintenance and 
operation at certain facilities if the 
facility was formerly an extension center or rural technology 
center of TSTCS. 

SECTION 12. Amends Section 4B, Development Corporation Act of 
1979, Article 5190.6, 
V.T.C.S., by adding Subsection (o), to authorize a corporation 
created under this section to pay a 
public junior college the cost of physical plant maintenance and 
operation at certain facilities if the 
facility was formerly an extension center or rural technology 
center of TSTCS. 

SECTION 13. Amends Subchapter C, Chapter 61, Education Code, by 
adding Section 61.0594, to 
read as follows:
Sec. 61.0594. FUNDING FOR HIGH-TECHNOLOGY COSTS OF POSTSECONDARY 
VOCATIONAL-TECHNICAL EDUCATION. (a) Requires THECB to make 
recommendations to the legislature for funding specific 
high-technology costs required in 
postsecondary vocational-technical education.
(b)  Authorizes THECB, to the extent funds are appropriated by 
the legislature,  to 
administer a program to support high-technology postsecondary 
vocational-technical 
education by assisting a public technical institute or junior 
college to cover certain special 
costs. Requires THECB to prescribe guidelines and procedures 
regarding requests for 
grants, and authorizes THECB to make grants to institutions as 
necessary.
(c)  Requires THECB to adopt rules implementing the provisions of 
this section which 
provide for awards on a competitive, peer review basis.  
(d)  Requires that the program be funded by appropriations and 
other means specifically 
for that purpose.  Requires the comptroller to issue warrants to 
recipients of grants in the 
amount certified by THECB.  Prohibits a grant to be used for 
anything else but the 
particular program for which it was given, in accordance with any 
conditions imposed by 
the THECB and cannot be expended for the general support of the 
institution.
(e)  Authorizes THECB to appoint an advisory committee to provide 
them with advice
 and requires THECB to employ a process of committee review and 
expert testimony and 
analysis to assist in consideration of grant requests.  

SECTION 14. Effective date:  September 1, 1997.

SECTION 15. Emergency clause.

EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT NO. 1
This amendment replaces, in SECTION 9, a reference to Cisco 
Junior College, Ranger 
Junior College, Weatherford College, or Western Texas College 
with a non-specific 
designation such as  "the selected institution" or "a public 
institution of higher education 
selected by the system board" to allow for greater flexibility in 
choosing where to 
transfer.  Additionally, the amendment would strike "particular 
board of trustees" or 
"junior college" and replace it with "selected institution" or 
"institution of higher 
education" in SECTION 9 through 12 of the bill.

COMMITTEE AMENDMENT NO. 2
This amendment inserts language requiring the transfers in 
SECTION 9, Sections 
135.701, 135.702, 135.703 to be subject to the review and written 
approval of the 
THECB.

COMMITTEE AMENDMENT NO. 3
This amendment adds a new SECTION to the bill, to be numbered 
appropriately, that 
would  prohibit the THECB from reducing or eliminating funding 
for the formulas under 
Section 61.059, for any class offered by a public technical 
institute due to the class 
enrollment if it meets or exceeds the five student minimum class